Visakhapatnam ITAT upholds
levy of interest u/s 201(1A) for AY 2013-14 and 2014-15 in case of assessee
failing to deduct tax at source u/s 194J, rejects assessee’s contention that
since the deductee had filed nil return of income and had no tax liability,
even after taking into account receipts from assessee, interest u/s 201(1A) was
not leviable; Notes that proviso to Sec. 201(1A) inserted w.e.f July 1, 2012
makes it very clear that even though the assessee is not deemed to be 'assessee
in default' under the first proviso to Sec. 201(1), the interest u/s 201(1A) shall
be payable from the date on which such tax is deductible to the date of
furnishing of return of income by such deductee; Holds that the tax liability
in the hands of the deductee has no connection with charging of interest u/s
201(1A), distinguishes assessee's reliance on co-ordinate bench rulings as they
pertained to AY prior to amendment to Sec. 201(1A); Relies
on Calcutta HC judgment in Kanoi Properties Pvt. Ltd to hold
that charging of interest from the date on which the tax was required to be deducted
till the date of furnishing of return of income by the deductee is automatic
and mandatory; Rejects assessee’s contention that interest u/s 201(1A) was
compensatory in nature relying on Madras HC decision in Chennai Properties
& Investments Ltd.:ITAT
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